Agenda item

The Assistant Director of the South West Audit Partnership (SWAP) presented his report which updated members on the progress of the Internal Audit Plan 2020-21 and brought to their attention any significant findings identified through the audit work. He highlighted some key elements of the report including the work completed in quarter 1 and that no corporate risks had been identified in the first quarter.

The Control Assurance Definitions had changed slightly and he would circulate further details to members – the main change was ‘partial’ had changed to ‘limited’ to reflect national wording. He referred to Appendix B and highlighted the audits that had been delayed due to the Covid-19 situation. The Project Governance and Health & Wellbeing audits were underway and he confirmed that he would circulate further details to members for information. Financial resilience was recognised as a risk but it was unclear at present when that audit would commence. He reminded members that the Audit Plan would be subject to change throughout the year.

During a long discussion members raised varying comments and questions on points of detail, some of which included:

·         Was there anything the Audit Committee should be doing regarding direction of travel for the potential reorganisation of local government in Somerset?

·         When were the last ICT audits done as several keep being delayed – would there be any additional risks from the delays?

·         Should Audit Committee consider a paper on the effect to finances from the Covid-19 situation. District Executive receive a report and question if Audit Committee should meet before the scheduled October meeting?

·         At one stage there was due to be a joint meeting between the Scrutiny and Audit Chairmen with the S.151 Officer, but it hasn’t happened to date.

·         Feel more information is needed about the financial risk to SSDC due to the impact of Covid-19.

In response to some of the comments made during discussion, the S.151 Officer and Assistant Director (SWAP) noted that:

·         Only the Secretary of State could make a decision about unitary proposals.

·         Audit would continue as business as normal and see no reason to change that approach at the current time.

·         The Somerset district councils were working on an alternative proposal to the County Council One Somerset unitary approach. We will continue to work with the other districts and Audit to ensure proposals are robust.

·         The timeframes between different ICT audits varied as each ICT audit was slightly different. SWAP were beginning to look at the ICT audits.

·         The S.151 Officer was content to bring a paper forward to the Audit Committee considering the financial implications of the pandemic.

·         Controls were in place regarding awarding of central government funded Covid-19 related grants and the accounting returns that are required to be submitted to government.

·         Significant sums of money were involved regarding the Covid-19 grants to businesses. Weekly accountancy returns were made and measures were in place to identify ineligible claims.

·         Through work undertaken by the Revenues and Benefits team, SSDC had a list of businesses who were believed to be eligible for Covid-19 grant funding but a significant number had still ot claimed. Any surplus funding was due to be returned at the end of August.

·         Acknowledged there is a shortfall in funding due to varying pressures from the impact of Covid-19, but can reassure members that the authority has reserves to mitigate the situation.

·         Will clarify when the last day is that business can apply for Covid-19 grant funding and will circulate details to members.

Members felt given the Covid-19 situation there was a need for Audit Committee to see and consider more frequent reports regarding the Council finances. Some were of the opinion that Audit Committee should see some of the financial reports before the District Executive rather than receiving summary versions afterwards. It was proposed and unanimously agreed that there should be an additional meeting arranged for early September, and a date of 10 September was noted. Members requested to receive a short written update on the status of finances, the impact of Covid-19 on the budget and the Covid-19 risks.

In response, the S.151 Officer, commented she would be on holiday for the September meeting but would be happy to do a briefing paper before then for members if it helped and for the Deputy S.151 Officer to attend the meeting. She confirmed she was happy to provide a briefing paper update now and another update report nearer the time for the September meeting.

Members were content with the approach suggested by the S.151 Officer.